2 exciting small cap ASX shares to buy: analysts

At the small end of town, analysts are expecting big things from these shares…

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If you're wanting to invest at the small side of town, then the two small caps listed below could be worth a closer look.

Here's why analysts think these small cap ASX shares could be in the buy zone:

Audinate Group Limited (ASX: AD8)

The first small cap ASX share that analysts rate highly is Audinate.

It is the $650 million digital audio-visual networking technologies provider behind the Dante audio over IP networking solution.

Management notes that Dante is the clear worldwide leader in its category and used extensively in the professional live sound, commercial installation, broadcast, public address, and recording industries. It has gained popularity due to the way it can replace traditional analogue cables by transmitting perfectly synchronised AV signals across large distances to multiple locations at once, using just an ethernet cable.

Macquarie is positive on Audinate and was very impressed with its first-half performance. In response to its results, the broker put an outperform rating and $10.00 price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

Another small cap ASX share that analysts rate highly is Readytech.

It is the $380 million provider of mission-critical software-as-a-service (SaaS) solutions for the education, employment services, workforce management, government and justice sectors.

Goldman Sachs is a fan of the company and believes it is well-placed to continue its solid growth in the current environment. This is thanks to its exposure to defensive end-markets. The broker notes that "government software has been a pocket of strength and resilience within TMT (~3/4 of RDY's earnings)."

Goldman has put a buy rating and $4.40 price target on its shares.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Audinate Group and ReadyTech. The Motley Fool Australia has positions in and has recommended Audinate Group. The Motley Fool Australia has recommended ReadyTech. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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